Market continues to climb and any one who missed the train is becoming very anxious and frustrated. So what shall we do if we did indeed miss the train? Will it continue to climb forever!!! Will we ever get a pullback/correction? What to do?
Nothing has changed in below chart:
- Nifty continues to remain above MA(100) and now MA(100) has managed to cross MA(200) which is considered bullish
- McClellan Index has also managed to stay above EMA(59) and rising which is also bullish
Daily Nifty chart provides subtle clues of what to expect in near term. Observe that RSI is in overbought territory, PPO is stuck in a range and NOT making new HIGH and MACD appears to be in process of making HIGH however not there yet! Hence it would be wise to be cautious at this time as a pullback might be awaiting around the corner.
Weekly Nifty chart displays that market is near 8600 resistance area and RSI is also in overbought territory. This could provide the trigger for the pullback to come!
Overall, market is very bullish however entering now may not be ideal as risk of pullback is higher. Remember, market often tries to bring maximum pain, hence if we did miss the train then not to get anxious rather lets wait for next low risk entry.
What does it mean for our Investments?
Market in strong bullish trend but be cautious...
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then time to relax, as market has turned around. Continue SIP as market remains in strong bullish trend. If in cash/ FDs/ liquid funds then might be wise to wait for a pullback.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. Check out our trade size calculator to manage your risk.
Market in strong bullish trend but be cautious...